Morice Land and Resource Management Plan
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- Production/Management Constraints
- Shipping Analysis
- Market Analysis
- Demand
- Prices
- Competition
- Market Opportunities
- Sales Channels
Location AnalysisThere is a variety of wild berries in the Morice TSA including: huckleberries, blueberries, soapberries, high bush cranberries, raspberries, thimbleberries, strawberries, saskatoon’s, bunchberries, Oregon grape and kinickinick. By far the most marketable and abundant types of berries in the region are the black huckleberry and the saskatoon berry. Although, no inventory has been undertaken of either the huckleberry or the saskatoon, the blackberry is said to grow primarily in the wetter (western), mid to high elevations of the TSA and the saskatoon primarily in the eastern drier sections of the TSA. Newly burned or logged sites are particularly abundant with these berries but they also routinely grow on the side of roads. There are no regulatory constraints to harvesting either huckleberries or saskatoon berries on Crown land, which allows for almost unlimited access. At the same time, there is no protection of prime picking sites. There are a number of non-commercial pickers that harvest each year for their own use. First Nations, in particular, are well known consumers of saskatoon’s, blackberries and soapberries. Generally, competition for picking sites is most intense nearest to town sites and highways. There is also limited competition with bears and birds for berries. Overall, however, there appears to be an abundance of the berries in the TSA, especially of saskatoons. Other uses of the land base such as forestry, mining and hunting do not seem to conflict or compete for the berry resources. In fact, logging practices that open the canopy usually assure that there are plots for new crops of the berries. The major constraint to berry harvesting is weather. If the weather is unusually dry or wet, the berry harvest is likely to be modest. The proximity to market is a major element of marketing berries, especially fresh or frozen berries. Both saskatoons and huckleberries require cooling immediately after harvest, in order to avoid spoiling. Hence, if the market is distant from the harvesting site, the risk of spoilage is high. Production/Management ConstraintsOne of the benefits of the wild berry business is that there is no berry management cost involved prior to harvesting berries each year. Mother Nature does all the work. On the other hand, the lack of crop management also means a more unpredictable supply of berries and potentially greater access costs (time spent looking for and traveling to berry patches). It also means that common berry patches will experience competition from other berry pickers. The seasonal nature of the business also means that supply of fresh berries is only available once a year (July to September). There is little infrastructure and skill involved in the fresh berry business, other than transportation, refrigeration and nimble hands. The frozen berry business requires additional freezing equipment (freezers or flash freezers), packaging equipment. The processed berry business, on the other hand, can require considerable infrastructure and skill depending upon the type of processed berry product. Hygiene is a particular concern in processing and requires government approved kitchen facilities and processing methods. There may exist in the Morice TSA expertise to produce a number of common processed berry products (syrups, jams and jellies). However, if a local entrepreneur wishes to export his/her processed product outside the area, the product will have to be finished to a very high standard. If that expertise is not available locally, it may be necessary to gain training, bring in an outside partner or a consultant to assist in product development. One example might include linking up with a chef from the area or from a notable restaurant or culinary school in Vancouver to craft a unique product. In addition to the berry product itself, packaging is very important. In addition to protecting the product, packaging gives a sense of image and quality and is therefore important in promoting the product. Many packaging materials and machines can be purchased in the market (jars, stickers, shrink wrap material etc.). To create a unique image, references to the local environment or culture (i.e. First Nation) might be highlighted on the packaging. For example, historically significant pictures might be added to logos, native or heritage boxes of wood might encase the product or the package may take the shape of heritage item such as a mask or a canoe. Shipping AnalysisRefrigerated shipping from towns in the Morice TSA south to Vancouver is not available on a regular basis unless the volume or the price is high. Typically, refrigerated shipping is only available one-way from Vancouver or Prince George into the region. Back hauling south is done but usually with non-perishable items (i.e. lumber) and the refrigeration turned off. This creates a serious restriction to marketing fresh and frozen berries from the area. Shipping of non-refrigerated products is less expensive and is usually done by truck either via Canada Post, courier or freight. Canada Post is usually the least expensive means of transporting within Canada. Large volume products must go by freight but this shouldn’t be a concern with processed berry products. The key concern with shipping from the Morice area will be breakage of fragile items such as jars and bottles. This concern can only be addressed through proper packaging. Market AnalysisMarket SegmentsThere is very little information about the wild berry market in North America but there are close enough similarities to the cultivated berry market such that certain analogies can be made. The market for huckleberries is considerably larger than for saskatoon berries, which is due to the wide spread exposure of the North American market to huckleberries. Saskatoon berries are known and commonly used on the prairies but relatively unknown and used outside of this area. The general market segments for berries include fresh, frozen and processed. The fresh berry market generally caters to u-pick, roadside sales, farmers’ markets, local grocery stores and berry processors. It is generally confined to a small seasonal market during picking season (end of July to September). The frozen berry market is largely restricted to supplying grocery stores and processors. Much of BC berries are shipped to eastern Canada and US and are bought year round. The processed berry market segment is perhaps the largest and most diverse market. Products in this category are numerous and growing. They include but are not limited to:
Jams and jellies are perhaps the most ubiquitous processed berry product in the market. DemandThe demand for wild berries is not well documented but it is affiliated with the organic fruit market, which is a small but growing niche in North America. Organic fruit constituted approximately 1% of grocery sales in 2001 (or US $11 billion) and has grown an average 22% annually since 1997. This growth rate is largely due to the growing public consciousness regarding the effect of pesticides, herbicides and genetically modified foods on their health. This market is expected to continue to grow as the boomer generation ages and becomes even more health conscious. Demand for Morice TSA wild berries can be divided into local and external markets. Local markets, including the Houston, Smithers, Granisle, Burns Lake and Francois Lake markets can provide a flexible market for fresh, frozen and processed berries. However, given that there no more than 15,000 people in these towns and that many people harvest there own berries and process them, sales potential is limited. Tourist sales via road side marketing, farmers markets and gift stores can add additional demand for the product but this will largely be seasonal. External markets in larger centers could be a profitable source for demand for wild berries from Morice TSA but this is likely to be in the processed form, since refrigerated shipping is irregular and the costs are prohibitively expensive. The population along highway 16 between Prince Rupert and Prince George is comprised of approximately 135,000 people and the market in this area is relatively uncompetitive. However, it very dispersed and comprised largely of a low to mid price group of buyers. Further south the major cities in BC accommodate approximately 2.7 million people, with a larger number of higher-end buyers, however this market is considerably more competitive, with a vast variety of wild, organic and conventional berry and fruit products. The demand for specialty and gourmet food products (high quality or high end) occupy about 10% of the grocery store sales in North America and are growing at almost 7% a year. Total sales in this niche sector in North America constitute over $30 billion per year. Capers Community Markets, Choices Market, Justin’s Natural Foods and Meinhardt’s Fine Foods would be appropriate locations for further market research into specialty and natural food opportunities in Vancouver. PricesThe pricing of wild berry products vary depending on the type of berry, the degree of processing and the location. Fresh or frozen huckleberries are generally more expensive than saskatoon berries but processed berry products appear to be similar in price (Table 22). Table 22. Price Comparison of Wild Huckleberry and Wild Saskatoons
Where price differences arise they tend to differ based on the quality of the product and the branding. CompetitionCompetition in the fresh, frozen and processed wild or organic Saskatoon and Huckleberry market is relatively localized and seasonal, often marketed at farmers’ markets, roadside kiosks and gift shops near where berries are picked. Several producers of fresh and frozen berries and jams and jellies can be found Smithers, Telkwa, and Hazelton and Vanderhoof. Competition in the cultivated (non-organic) saskatoon and huckleberry market is the most significant competition in the berry product market and it is widespread and growing. New cultivated berry farms are entering the market each year especially on the prairies. Much of the production is sold wholesale to larger processors out east but some of these farms are also selling into regional grocery outlets or marketing processed products themselves. There is less competition in the wild (natural) and organic berry market in North America but the market is also relatively small. Market OpportunitiesThere are local and external market opportunities in the wild berry market for Morice TSA businesses. Locally, there is an opportunity to sell fresh, frozen and processed huckleberries and saskatoon berries to resident consumers and tourists via roadside sales, farmers markets, gift shops, restaurants and lodges and perhaps independent grocers. This is a small and relatively seasonal market but enough to keep a small business occupied for part of the year. The bigger market opportunity is the external market, whether that is the Prince George to Prince Rupert highway corridor or further south into southern BC or the US. However, given the existing competition and the disadvantageous shipping costs, the most marketable product will likely be processed berries. Moreover, the product will need to be unique enough to stand out and garner a mid to high price to offset initial low production volumes. Some products in this area may include:
Unless, there is considerable local expertise available to draw upon, such niche businesses will be difficult to launch in a large way. They require considerable design and marketing development to make them successful. Assistance is likely to be necessary. Sales ChannelsThe channels for local sales in the Morice area direct to the consumer are roadside sales, farmers markets, local home or craft shows. Wholesale channels include gift shops, small independent grocery stores, local lodges and resorts and restaurants. The channels for direct sales outside the Morice area can be through regional craft, home shows or through a website, a catalogue or through magazine advertising. Wholesale sales to gift shops, specialty or natural food stores, resorts or lodges, museums or natural history galleries can be made door to door or through regional trade, craft or resort tourism shows and trade magazine advertizing. Download 1.06 Mb. Share with your friends:
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